New home loan contracts with mixed rates reach record levels.

There is a variable interest rate regime on your home loan, but would you prefer to contract a mixed rate regime? You can also do that! Contact the credit intermediaries of Poupança no Minuto and access better conditions on your loan now.

New home loans with mixed rates reach record weight in April.

The mixed interest rate has been increasingly contracted in housing loans, as it offers an initial period of fixed interest rate currently - in this period of high interest rates - returning to the variable rate when it is expected that the Euribor rates will drop again with a significant impact on the monthly repayment of the loan.

That's why, according to the Bank of Portugal (BdP) quoted by Notícias ao Minuto, new home loans with mixed interest rates totaled 75% of the total contracted in April, reaching a record weight.

"This is the maximum value since the beginning of the statistical series in December 2021," highlights the central bank, quoted by the news, which also details that "at the end of April, mixed-rate loans accounted for 22% of the housing loans stock."

It was in early 2023 that the increase in new mixed-rate mortgage credit operations became evident, following the rise in interest rates. They went from 16% of the amount of new operations in December 2022 to 75% last April.

"The increasing demand for new mixed-rate mortgage contracts has been reflected in the change in the composition of the housing loan 'stock': The regulator indicates that the weight of these loans in the housing credit 'stock' increased from just 6% in December 2022 to 22% in April of this year," the news article reads.

Notice that the Euribor average in May dropped in all three terms, three, six and 12 months, with a greater impact than in April and in shorter terms. It went down from 0.073 points to 3.813% for three months (compared to 3.886% in April), 0.052 points to 3.787% for six months (3.839% in April), and 0.021 points to 3.681% for 12 months (versus 3.702% in April).  

And it was now the first time, on June 6, that the European Central Bank (ECB) cut interest rates by 25 basis points, the first cut since March 2016, and the beginning of a moderate retreat in Euribor rates that will allow relief in mortgage payments.

Want to access the mixed interest rate on your mortgage? Find out how at [URL].

If you have a variable rate mortgage indexed to Euribor, but want to change the interest rate regime to a mixed rate, it is possible! By renegotiating your current conditions with the bank or transferring the credit to another bank that allows it, you can get a (much) lower monthly payment through this change.

Simulate the transfer of housing credit with a new rate below, or contact the credit intermediaries of Poupança no Minuto for an intermediation service with banks at no cost!